Question

What are the inherent risks for food delivery service; like a companies of HelloFresh or Blue Apron?

HelloFresh's business model is to prepare the ingredients needed for a meal, and then deliver them to customers, who must then cook the meal using recipe cards, which takes around 30–40 minutes. It generally provides about three two-person meals a week for about $60 to $70. It offers a choice from about 19 recipes. In the United States, HelloFresh offers a wine-subscription service, based on that of its competitor Blue Apron. In several markets, it provides "Rapid Box" meals which take only 20 minutes to prepare.

Answer 1

The inherent risks for food delivery service; like a companies of HelloFresh or Blue Apron are that the delivery might be late which could lead to customer dissatisfaction. Also the food served could be of bad quality which would affect the companies badly due to more customer complaints. Also the customers might want more choice of food and the choice offered by these company might be limited which would also result in customer dissatisfaction. Another risk is the changing demand cycles of the customers which could lead to higher food inventory being maintained which could also lead to food perishing and the companies could have to suffer losses due to it.